The price of Brent exceeded $90 per barrel amid plans of Moscow and Riyadh to continue cutting production

The price of Brent oil on the London Stock Exchange ICE exceeded $90 per barrel amid the decision of Saudi Arabia to extend restrictions on fuel production. As of 16:48 Moscow time, the cost of the November Brent futures was $90.35 per barrel and grew by 1.517% compared to the opening price of trading. This is the highest level since November 2022.

By this time, the price of October futures for WTI oil on the stock exchange in New York reached $87.2 per barrel, which is 1.92% higher than the price of the security at the opening of trading.

Earlier today, on September 5, Saudi Arabia announced that it would maintain a reduction in oil exports to 1 million b/d until the end of this year. Russia a little later reported that it will extend the reduction in oil supplies to world markets by 300 thousand barrels per day until the end of 2023.

The Russian Federation initially decided to cut production by 500,000 bpd in August, as a result of which sea exports fell to 3.1 million bpd, according to Kpler. In September, in the context of refinery repairs, the Russian government decided to increase exports, while maintaining a reduction in supplies of 300,000 bpd. The reduction in exports allowed domestic companies to lower Urals discounts to Brent and increased the cost of Russian raw materials to more than $70 per barrel.

Read more in the material “Kommersant” “Compound Sentence”.

Erdni Kagaltynov